1. Hamilton vs. Jefferson

2. Overview on their beliefs… Hamilton, being from the North, backed manufacturing, higher tariffs and business Hamilton wanted a strong central government Hamilton did not want people to have much power because he had little faith in the average person Jefferson, being from the South, backed farming and lower tariffs Jefferson wanted strong powers for the states Jefferson believed that the people had the right to rule the country

3. Hamiltons Economic Beliefs: Believed in higher tariffs, which would raise the price of foreign products

4. Jeffersons Economic Beliefs: Jefferson worried about depending too much on business and believed that farmers were independent voters

5. Hamilton wanted to start a national bank where the government could safely deposit its money; thought the government should also build a national mint (a place to make coins) so that America could start printing its own money

6. Jefferson thought Hamiltons plans for a national bank gave too much power to the federal government

7. Hamilton responded to Jeffersons opposition by quoting the elastic clause, which states that Congress can make all laws which shall be necessary and proper to govern the nation

8. Hamilton and Jeffersons Interpretations of the Constitution Hamilton believed in a loose construction of the U.S. Constitution (federal government can take reasonable actions that the Constitution does not specially forbid) Declared the elastic clause allowed for the creation of a national bank Jefferson believed in a strict construction of the U.S. Constitution (only do what the Constitution says – no reading between the lines) Thought the elastic clause should only be used in special cases

9. President Washington and Congress agreed with Hamilton; Bank of the United States – countrys 1 st national bank (1791)